THE PRIME MINISTER
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No. 131/QD-TTg
Hanoi, January 23, 2009
 DECISION
ON INTEREST RATE SUPPORTS FOR ORGANIZATIONS AND INDIVIDUALS THAT TAKE BANK LOANS FOR PRODUCTION AND BUSINESS
THE PRIME MINISTER
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the December 12, 1997 Law on the State Bank of Vietnam and the June I7. 2003 Law Amending and Supplementing a Number of Articles of the Law on the State Bank of Vietnam;
Pursuant to the December 12, 1997 Law on Credit Institutions and the June 15, 2004 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;
Pursuant to the Government's Resolution No. 30/2008/NQ-CP of December 11, 200S, on urgent solutions to curb economic decline, maintain economic growth and assure social welfare;
At the proposal of the Governor of the State Bank of Vietnam, the Minister of Finance and the Minister of Planning and Investment,
DECIDES:
Article 1. In 2009 the Stale will provide interest rate supports for organizations and individuals that take bank loans for production and business in order to reduce costs of products and goods, maintain production and business and generate jobs when the economy is affected by the world financial crisis and economic recession.
Article 2. Subjects and scope of application
1. Credit institutions which provide loans to organizations and individuals (below collectively referred to as borrowers) under law, including state commercial banks, joint-stock commercial banks, joint-venture banks, Vietnam-based branches of foreign banks, wholly foreign-owned banks and the Central People's Credit Fund (below collectively referred to as commercial banks).
2. Vietnam dong short-term bank loans granted under credit contracts signed and performed in 2009 to organizations (enterprises, cooperatives, cooperative groups, households, etc.,) or individuals for use as working capital for production and business and indicated in credit statistics according to the State Bank of Vietnam's regulations on reporting and statistics, except loans in the branches and domains listed in the Appendix to this Decision.
Article 3. Principles of interest rate support, loan term, loan amounts and support interest rate
1. Interest-rate support principles are that commercial banks shall provide loans for use as working capital for production and business activities under the ordinary credit mechanism and provide interest rate supports under the Prime Minister's regulations and the State Bank of Vietnam's guidance; commercial banks may not refuse to provide interest rate supports for eligible loans; and shall periodically report on the provision of interest rate supports to the Slate Bank of Vietnam for examination and supervision.
2. The maximum term of loans eligible for interest rate supports is 8 months for loans under credit contracts signed and performed between February 1 and December 31, 2009.
3. The support interest rate applicable to borrowers is 4%/year, calculated on the actual loan amount and loan term within the duration specified in Clause 2 of this Article; when collecting loan interests, commercial banks shall reduce payable interest amounts for borrowers.